Speaker 1: This is Bloomberg Business Week. I'm Carol Masser and I'm
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Speaker 1: us on YouTube search Bloomberg Global News Carol Masterlowa, Tim
Speaker 1: Stanovik in our Interactive Broker Studio. So we talked about
Speaker 1: some of the headlines today from Anglo Merkel making an
Speaker 1: about face when it comes to shutting down her economy.
Speaker 1: You've got cases, virus cases passing a hundred and twenty
Speaker 1: four million, tim death succeeding two point seventy three more
Speaker 1: than four hundred sixty million those shots have been given worldwide.
Speaker 1: Let's get into it with Elizabeth Stewart, Professor of American
Speaker 1: Health at the Johns Hopkins Bloomberg School of public Health
Speaker 1: joining us on the phone from Washington, d C. The
Speaker 1: Johns Hopkins Bloomberg School of Public Health is supported by
Speaker 1: Michael R. Bloomberg, founder of Bloomberg LP and Bloomberg Philanthropies.
Speaker 1: Professor Stewart, Thanks so much for joining us. What is
Speaker 1: concerning you right now, because there's this interesting dichotomy playing
Speaker 1: out here in the U S which is millions of
Speaker 1: vaccines a day are being given in the US, but
Speaker 1: at the same time we are not seeing that necessarily
Speaker 1: reflected in great news when it comes to cases in
Speaker 1: many parts of the country. Yeah, thanks so much for
Speaker 1: having me to talk about this, And I think you're
Speaker 1: exactly right. There's sort of some feelings of cautious optimism
Speaker 1: with pretty good vaccine rates in the US. You know,
Speaker 1: would be good to speed them up, but we're doing
Speaker 1: pretty well with with the vaccinations. But at the same time,
Speaker 1: we really can't let down our guard, and you know,
Speaker 1: we're sort of people talk about we're kind of at
Speaker 1: a race with the variants that are emerging um, and
Speaker 1: so we really need to kind of get those vaccinations
Speaker 1: out and in some people's arms, and also at the
Speaker 1: same time not let down our guard too much. We
Speaker 1: need to kind of give a little bit more time,
Speaker 1: more physical distancing, continued mask wearing, uh, so that we
Speaker 1: can really sort of look ahead a few months and
Speaker 1: really hope that we're in a much better place then,
Speaker 1: you know, Professor Stewart, We have some upcoming coverage in
Speaker 1: the Bloomberg Business Week magazine that's all about the potential
Speaker 1: for a COVID passport in order to allow traveling happening.
Speaker 1: But one of the concerns is that we don't really
Speaker 1: know how long the vaccine ultimately keeps you immune from
Speaker 1: potentially getting the virus again or getting a variant. And
Speaker 1: I do wonder, what is it that you are watching
Speaker 1: closely to make sure that we get enough population vaccinated
Speaker 1: by what date ahead of any possible variant or another wave. Yeah,
Speaker 1: I think it's a it's a great question, and we
Speaker 1: are certainly monitoring that. I want to say that there
Speaker 1: is some sort of growing evidence or sort of emerging
Speaker 1: as evidence I should say that the vaccines actually give
Speaker 1: longer lasting and better immunity than infections, and so I
Speaker 1: want to sort of point out that it does. There's
Speaker 1: hope that the vaccinations will actually kind of help us
Speaker 1: even more than people sort of being naturally infected. Um,
Speaker 1: but we do really need to you know, there are
Speaker 1: these variants emerging in different places. It's unclear whether there
Speaker 1: might be booster shots needed for vaccines, you know, sort
Speaker 1: of like we have flu shots every year. UM. So
Speaker 1: the scientists are working really hard on that, and I'm
Speaker 1: hopeful and really quite hopeful that they will sort of
Speaker 1: you know, maybe we'll need those booster shots. But you know,
Speaker 1: it does seem like the vaccines are really still working
Speaker 1: very well, and I think, well, no much better kind
Speaker 1: of where the country will be in a couple of months,
Speaker 1: hopefully most adults will have access to the vaccine you know,
Speaker 1: sort of early summer, uh, and that I think that
Speaker 1: will really will really start to see some good results
Speaker 1: after that. What do we need to do when it
Speaker 1: comes to addressing other issues related to pandemic and lockdown,
Speaker 1: namely mental health and the way that we've seen this
Speaker 1: pandemic in lockdowns affect young people, especially those kids who
Speaker 1: missed out on a year of in person school. Here
Speaker 1: in New York City high schools just went back to
Speaker 1: in person learning on Monday, for example. What do we
Speaker 1: need do? Yeah, thanks so much for raising this I
Speaker 1: think it's a topic that hasn't been getting a lot
Speaker 1: of attention, But we need to remember that the mental
Speaker 1: health implications might linger a long time even after this
Speaker 1: sort of infectious disease pandemic results. As you noted, we're
Speaker 1: finding in a lot of studies that sort of eighteen
Speaker 1: to thirty year olds and even those under the eighteen
Speaker 1: are experiencing really high levels of distress. You know. Recent
Speaker 1: Pew Research Center study just in the past month found
Speaker 1: that approximately a third of young adults were experiencing high
Speaker 1: levels of mental distress UM and that was the highest
Speaker 1: rate among age groups. It's a group where they were
Speaker 1: sort of just starting to get you know, emerging into adulthood,
Speaker 1: and they're kind of late teens and early twenties are
Speaker 1: looking very different than they sort of were expecting. So
Speaker 1: I think we're gonna need really attention to screening for them,
Speaker 1: screening for all of us really also connections to services.
Speaker 1: There are effective mental health services available UM, and we
Speaker 1: need to make sure as those kids can sort of
Speaker 1: recover from this time in their lives. We're gonna talk
Speaker 1: about this a little bit more mental health, uh, and
Speaker 1: what companies are doing. We've got the CEO of Accenter
Speaker 1: North America, and he specifically they've been reaching out to
Speaker 1: their employees creating programs because they realize this is something
Speaker 1: that's had a tremendous impact on their workforce. I do
Speaker 1: wonder too, if this is raised overall our awareness that
Speaker 1: mental well being is as important, uh, Professor Stewart as
Speaker 1: our physical well being, and kind of taken away maybe
Speaker 1: some of the stigma of talking about it. And just
Speaker 1: got about fifty seconds. Yes, I certainly hope so. Um.
Speaker 1: I think this new attention is great. It's wonderful to
Speaker 1: hear about companies that are focusing on this, and yes,
Speaker 1: screening programs, mental health well being programs, it's what we're
Speaker 1: gonna need in a lot of settings, workplaces, schools, all around.
Speaker 1: So it's great to see this this attention. Alright, we're
Speaker 1: gonna leave it on that note. I'm really glad to
Speaker 1: get some time with Elizabeth Stewart. She is Professor of
Speaker 1: American Health at John's Hopkins Bloomberg School of Public Health,
Speaker 1: joining us on the phone from Washington, d C. Him
Speaker 1: we see the battle. It is finally on, or at
Speaker 1: least it kind of feels that way when it comes
Speaker 1: to dominance in the EV market, which begs the question
Speaker 1: is the era of Elon coming to an end? And
Speaker 1: there's an established car company that has beginning a lot
Speaker 1: of attention in terms of its investment into evs. Yeah,
Speaker 1: we're talking about folks, Waggett. This is the subject of
Speaker 1: a story the upcoming issue of Bloomberg business Week magazine
Speaker 1: Bloomberg News Europe Auto's team leader Craig Trudel wrote it,
Speaker 1: and he joins us on the phone from our London
Speaker 1: bureau along with Bloomberg business Week editor Joe Weber on
Speaker 1: the access line in Brooklyn, and Joel, I gotta say
Speaker 1: the first line of craig story, he doesn't date a
Speaker 1: synth pop star publicly puff on blunts, so profess to
Speaker 1: want to die on Mars. But Herbert GeSe is starting
Speaker 1: to look and sound an awful lot like Elon Musk.
Speaker 1: I love that. Yeah, Craig did a great job of
Speaker 1: the story, And you know, I just want to totally
Speaker 1: be clear that you know, for for more than a
Speaker 1: decade now, I think Tesla has just dominated what a
Speaker 1: bunch of naysayers said would never be a viable space,
Speaker 1: and by by being such a leader, in the space.
Speaker 1: It has absolutely transformed the future of the auto industry
Speaker 1: um and the question now is like, are there is
Speaker 1: there going to be meaningful competition? And the head start
Speaker 1: that Tesla has had like leads us to to now
Speaker 1: and Volkswagen is going to basically be of, you know,
Speaker 1: a viable competitor in the very near future. They will
Speaker 1: have almost instant scale from from what we're able to
Speaker 1: kind of look at with their numbers, and we're gonna
Speaker 1: basically see a version of the world that starts to
Speaker 1: look a little bit more like streaming, where Netflix also
Speaker 1: had a huge lead, but it wasn't like other incumbents
Speaker 1: could enter the space and also have a decent business model.
Speaker 1: So so, Craig, how do you how do you see
Speaker 1: this all all setting out? How realistic of a shot
Speaker 1: does Volkswagen really have here to take on Tesla's market power? Yeah,
Speaker 1: I think it's really interesting that the comparison we made
Speaker 1: to streaming absolutely makes sense. And I think, you know,
Speaker 1: the company that we raise in this story that you
Speaker 1: know is a great example of what v W might
Speaker 1: be like is Disney, where you know, they have uh,
Speaker 1: you know, all the hits, Uh, they have an ability
Speaker 1: to you know, bring out some new ones you think about,
Speaker 1: you know, Disney Plus and what a hit the Mandalorian
Speaker 1: has been. Uh, you know, Volkswagen is a company that
Speaker 1: has a lot of flaws and uh, they still have
Speaker 1: a lot to overcome in that regard. But erber dece
Speaker 1: really is dead set on on you know, really taking
Speaker 1: on Musk and he's not uh, you know, sort of
Speaker 1: dismissive of of Ellen. I think that's one of the
Speaker 1: most interesting things about him. He really, I think takes
Speaker 1: Ellen seriously, has thought highly of him and and has
Speaker 1: said so. He's been very public about the idea that
Speaker 1: they are sort of a yardstick for VW, which is
Speaker 1: really something considering this is a company that sells, you know,
Speaker 1: in normal years, more than ten million cars worldwide. Yeah,
Speaker 1: that's a lot of cars. Hey, Craig, I want to
Speaker 1: home in on something that I really focused on in
Speaker 1: your story, and it reminded me of what Volkswagen has
Speaker 1: gone through over the last year. Skeptics you write could
Speaker 1: be forgiven for raising their eyebrows at the idea of
Speaker 1: going electric. And I'm paraphrasing you here, coming as it
Speaker 1: was from the same car maker that spent years gaslighting
Speaker 1: the world about quote clean diesel. Where is where is
Speaker 1: Volkswagen in getting over that scandal because it is you know,
Speaker 1: a tough message I think for the company given its
Speaker 1: recent history. Yeah, it's it's still something that is playing
Speaker 1: out in the course and it's still haunting them, you know, things,
Speaker 1: things that that they're going to have to deal with
Speaker 1: in terms of more settlements, uh and uh, you know,
Speaker 1: dealing with even questions about you know, disclosure. A lot
Speaker 1: of those sorts of issues continue to linger. I think,
Speaker 1: you know, largely the world has you know, kind of
Speaker 1: uh more or less moved on. I'm sure there are
Speaker 1: consumers who you know, did buy into the quote unquote
Speaker 1: clean diesel uh, you know messaging who really felt betrayed
Speaker 1: and would will never buy a VW again. But I
Speaker 1: think we have been surprised to see that, you know,
Speaker 1: especially in America, where you know, VW has never been
Speaker 1: uh you know, really big in the US. But we
Speaker 1: have seen, you know, this is a company that while
Speaker 1: they're still small there, you know, they really have come
Speaker 1: all the way back in terms of the hits that
Speaker 1: they took in the immediate aftermath of that scandal. Uh.
Speaker 1: You know, they remain a sort of bit player, but
Speaker 1: they're back to where they were or were back to
Speaker 1: where they were before COVID hit. And you know, I
Speaker 1: think the thing that there's mentioning their uh Tian and Craig, Uh,
Speaker 1: we can turn it back to you on this again,
Speaker 1: is is the fact that as to to make good
Speaker 1: on basically epic deception, they had to agree to Electrify
Speaker 1: America and that has been a huge infrastructure under a
Speaker 1: king UM. Craig talked to us about what they've attempted
Speaker 1: to be building UM quietly during during the past couple
Speaker 1: of years. Yeah, they they it was a massive settlement
Speaker 1: that they agreed to with the US and California and
Speaker 1: Electrify America is this affiliate that you know, is part
Speaker 1: of two billion. Uh was was a portion of that
Speaker 1: settlement that needed to go to setting up charging infrastructure
Speaker 1: and uh sort of you know, building up sort of
Speaker 1: educating consumers in the US about electric vehicles. And Electrify
Speaker 1: America is now the largest fast charging network in the US. UH.
Speaker 1: This is a company that was you know, set up
Speaker 1: by Volkswagen, funded by Volkswagen, but as sort of a
Speaker 1: condition of the settlement, it also needs to sort of
Speaker 1: benefit everybody. It can't just favor Volkswagen or be you know,
Speaker 1: closed to VW. So this is a network that actually
Speaker 1: is being used by Ford Mustang mach Ee drivers. Uh.
Speaker 1: And it'll it'll be a network that will really come
Speaker 1: in handy for you know, really the broader efforts of
Speaker 1: the industry to go electric electric and take elon Muscan. Hey, Craig,
Speaker 1: really quickly, twenty five seconds. I've seen a picture of
Speaker 1: both Deecee and Musk together. I think it was something
Speaker 1: like the Golden Steering Wheel Awards in Berlin in twenty nine.
Speaker 1: Could these two ultimately work together? And you've gotta be
Speaker 1: quick for me twenty seconds. I could see them absolutely
Speaker 1: wanting to put their their heads together for a project.
Speaker 1: H You know, there was a bit of flirtation even
Speaker 1: that that we learned about back in eighteen during the
Speaker 1: Go Go Private fiasco. So these two could be friends, yeah,
Speaker 1: and then they might actually become SITH pop stars. Who knows.
Speaker 1: It's an incredible story. Craig Trudal, Europe Autos team leader
Speaker 1: of Bloomberg News along with Joel Webber, editor of Bloomberg
Speaker 1: Business Week. So it must read on this Wednesday's about
Speaker 1: Intel CEO Pat Gelsinger. He's charting a comeback for the
Speaker 1: company really to get back to its past hip making
Speaker 1: glory and deal with those current chip shortages. Here's what
Speaker 1: he told Bloomberg a short while ago. COVID caused everybody
Speaker 1: a step back a bit from capacity and build out
Speaker 1: in the supply chain of the industry, and it induced
Speaker 1: a radical increase in demand. So you have supply chains, uh,
Speaker 1: scaling back a bit and demands scaling up radically. Wow,
Speaker 1: and now we're in a position that there's a meaningful shortage,
Speaker 1: and you know it's going to be a couple of
Speaker 1: years until that's fully resolved supply demand and balance or
Speaker 1: is there a lot more going on? That? Of course,
Speaker 1: was Intel CEO Pat Gilsinger catching up with our Emily
Speaker 1: Chang earlier on Bloomberg Television. Let's get into the story
Speaker 1: two of our top chip watchers, Ian King. He is
Speaker 1: u S Semiconductor and Networking reporter at Bloomberg News. He's
Speaker 1: on the phone from our Bloomberg nine sixty. Actually he's
Speaker 1: in our Bloomberg nine sixties studio in San Francisco along
Speaker 1: with an entree of us on he's Bloomberg Intelligence senior
Speaker 1: semi conductor and hardware analyst. He is on the phone
Speaker 1: in New Jersey and I want to start with you. Listen,
Speaker 1: you and I have talked about this before. I've talked
Speaker 1: about it with a non but let's do the big picture.
Speaker 1: Remind everybody of the big backdrop when it comes to
Speaker 1: the U S. Semi conductor industry, because it it's been struggling.
Speaker 1: It's been struggling in terms of its production, as in
Speaker 1: the ability to physically make chips. That's a skill set
Speaker 1: that's been fading. An Intel was the sort of last
Speaker 1: basting of that, and Intel has had its own problems,
Speaker 1: so that's definitely a fade away if you if you like.
Speaker 1: But frankly, the industry couldn't be stronger in general. You
Speaker 1: have other companies and and you know who are actually
Speaker 1: designing and outsourcing their manufacturing, who are going from strength
Speaker 1: to strength, and the US is still by far the
Speaker 1: biggest you know, beneficiary of of this sort of growth
Speaker 1: in sales of semi conductors via companies like Callcom by
Speaker 1: a companies like Broadcom. What does that supply chain look like, though,
Speaker 1: I where does it span? It spans the whole globe.
Speaker 1: Something that could be designed by an American company in
Speaker 1: its design bureau in Europe, then gets manufactured in Taiwan,
Speaker 1: then gets shipped to Malaysia to get packaged, then get
Speaker 1: shipped to a Chinese factory where it gets put into
Speaker 1: an end device, then get ships out of China for
Speaker 1: sale in the US or Europe or anywhere in the world.
Speaker 1: And non come on in on this and kind of
Speaker 1: layer on top of it globally what's going on because
Speaker 1: we keep talking about uh, kind of a tech war,
Speaker 1: tech cold war that's going on, or we'll be going
Speaker 1: on and you see a lot more, especially the Chinese
Speaker 1: and others looking to develop their own ship industries. UM
Speaker 1: layer on that aspect of this too. Yeah, so listen,
Speaker 1: I think he informed it really well. There's two vectors
Speaker 1: of issues, right. One is the chip manufacturing constraints that
Speaker 1: we're seeing UM as a result of the spike in
Speaker 1: demand and the shortage and supply. And the second is
Speaker 1: the technological complexity associated with the production and where Intel
Speaker 1: has been struggling. Now we're Taiwan semiconductor has not been structed.
Speaker 1: It has been producing advanced semiconductors rather efficiently UM so
Speaker 1: much so that it is cornered the market on advanced
Speaker 1: transistor based semiconductors that Qualcom and MD and UM and
Speaker 1: Apple use. So the question is Intel stepping into this
Speaker 1: BOYD saying hey, we can not only regain our past
Speaker 1: glory UM and manufacture these advanced logic chips UM and
Speaker 1: compete with the likes of t SMC, but also that
Speaker 1: we can do it here at home, providing a sort
Speaker 1: of a geographical counterbalance to t SMC, because right now
Speaker 1: all of the advanced logic chipmaking is with t SMC,
Speaker 1: primarily which is based out of Taiwan, and secondarily with
Speaker 1: this Samsung, which is based out a career. So the
Speaker 1: US is trying to provide a geopolitical counterbalance to that
Speaker 1: East Asian basket. If you may know, how does how
Speaker 1: does how does intell do this in the US at
Speaker 1: scale for a price and cost that actually works? Yeah,
Speaker 1: So over the past couple of years, I'm afraid to
Speaker 1: say it hasn't UM, and that's where it has struggled,
Speaker 1: and UM others have taken the mantle of leadership away. Now,
Speaker 1: at the end of the day, it comes back to
Speaker 1: a focus on manufacturing that there again, two factors here
Speaker 1: is making the chips smaller and smaller, or using transitions
Speaker 1: that are smaller and smaller so you can have more
Speaker 1: density packed chips, thereby making it more powerful. Doing it
Speaker 1: at scale reduces the cost per transistor. The other aspect
Speaker 1: of it is that Intel historically has been architecturally monolithic
Speaker 1: one chip um controlled by one die, and the industry
Speaker 1: has moved away from that. It tries to put together
Speaker 1: a bental box of different kinds of chips and made
Speaker 1: on different transistors and different technologies, and effectively it matches
Speaker 1: a workload, so intels more intercot Geltingers straining to do
Speaker 1: multiple things at the same time. Shrink the transistor is
Speaker 1: more effectively that they haven't been able to do in
Speaker 1: the past, change its architecture and build it at scale
Speaker 1: to computer with t smc um I'll tail battle. But
Speaker 1: on a relative basis, we are cautiously optimistic on Intel's
Speaker 1: chances before uh compared to when Geltinger came aboard. So
Speaker 1: we think they've got a good shot. And he's he's
Speaker 1: kind of a new guy in town. UH. And I mean,
Speaker 1: is he a game changer for this company? Well, he's
Speaker 1: the new old guy. Yeah, exactly. His tagline was, you know,
Speaker 1: the new Intel is the old Intelli can remember. Yeah,
Speaker 1: he joined this company in the nineties seventies as a teenager, right.
Speaker 1: He left in two thousand and nine to go and
Speaker 1: run vm ware. But he was you know, he is
Speaker 1: absolutely staped in the company's traditions, and he's also a technologist,
Speaker 1: you know, to he was a chip designer, part of
Speaker 1: the fundamental core of of what Intel is as a
Speaker 1: chip company. He actually physically made himself. So you know,
Speaker 1: back to what An answered, it's that's where the optimism
Speaker 1: comes from. It's like, at least you have somebody in
Speaker 1: control who seems to understand the problem, because that was
Speaker 1: the concern with his predecessor, who's a financial guy. So
Speaker 1: people believe that at least Pat has a handle on
Speaker 1: the problem. And you saw the stop jump up yesterday
Speaker 1: on optimism that hey, he gets it, maybe he can
Speaker 1: fix it. But I think again to what An answaid
Speaker 1: and a lot of other analysts and investors have said,
Speaker 1: it's not going to happen tomorrow. It's going to be
Speaker 1: a slow process and there's no guarantee of success here.
Speaker 1: Intel's birthright doesn't exist anymore. Yea. And meanwhile, you've got
Speaker 1: Apple doing chips right, and other company is doing chips,
Speaker 1: so I feel like it's another And I know all
Speaker 1: chips are not the same, but nonetheless it does feel
Speaker 1: like the industry is definitely changing. Um, guys, thank you
Speaker 1: so much. In king US semiconductor networking reporter at Bloomberg
Speaker 1: News with us from San Francisco and with an answering
Speaker 1: of US and senior MA conductor and hardware analyst at
Speaker 1: Bloomberg Intelligence on the phone in New Jersey. I'm road Marco,
Speaker 1: a journal now. But you let me drive. No, no, no,
Speaker 1: he's going to drug home. Please, I'll do the riding gravel.
Speaker 1: Lets me. I want to drive, Just drive by the
Speaker 1: question trying. This is the drive to the globe. Tim
Speaker 1: me thanks well, drying us on Bloomberg Radio. All right,
Speaker 1: just about ten minutes left in today's trading session. It
Speaker 1: is time for the drive to the closing with us.
Speaker 1: As Dave Masa, he's managing director at Direction, which has
Speaker 1: a roughly twenty billion dollars in assets under management, and
Speaker 1: that includes its Moonshot Innovator DTF that has about three
Speaker 1: four million in assets under manage. It Dave joins us
Speaker 1: on the phone in New York City. Dave, nice to
Speaker 1: have you here with Tim and myself. How are you.
Speaker 1: I'm doing well, Thanks for having me back. So talk
Speaker 1: to me about flows. Where are you guys, what kind
Speaker 1: of money is coming in new investment money that folks
Speaker 1: are looking to put to work, What do the fun
Speaker 1: flows look like, and where is the money going? So
Speaker 1: we're really seeing a contrast and fun flows across are
Speaker 1: both our leverage and inverse EPs, which are primarily for
Speaker 1: traders to folks for a managing their portfolios on a
Speaker 1: short term basis, and then also in our thematic EPs
Speaker 1: like the Moonshot Innovator's fun But what's happening is it's
Speaker 1: a bifurcation from the highest growth areas, which of course
Speaker 1: we're Darling's last year in to some extent this year
Speaker 1: to think of semiconductors, thinks of technology, think of other
Speaker 1: disruptors like cloud computing. But then on the other hand,
Speaker 1: the most beaten down areas like oil and gas, regional banks.
Speaker 1: Almost nothing in between is seeing flows. So all further
Speaker 1: lineup is a bit quiet. But it's either those on
Speaker 1: the most extreme level with the largest growth opportunities and
Speaker 1: some of the richest valuations, and also those that either
Speaker 1: not necessarily benefit from reopening but just simply have been
Speaker 1: so out of favor. What's the what's the trend when
Speaker 1: it comes to E t F the E t F
Speaker 1: that you're seeing right now, Dave. I mean, we talked
Speaker 1: about ARC all the time, and and it certainly it's
Speaker 1: getting it's getting a lot of interest. Um, But but
Speaker 1: why are e t F s having a moment during
Speaker 1: the pandemic. Well, as we know, uh, the interest in
Speaker 1: investing in trading has came back markedly as folks were
Speaker 1: spending more time at health. But what I find most
Speaker 1: interesting is ets as an invest in vehicle. Has I've
Speaker 1: actually become a favored tool because they offered diversified exposure
Speaker 1: to areas in the market. So certainly we spend a
Speaker 1: lot of time thinking about the meme stocks and the
Speaker 1: next thing that's getting attention on Reddit. But unless you're really, uh,
Speaker 1: you know, looking to make a big bet and some marys,
Speaker 1: maybe better off using an e t S because I
Speaker 1: can get diversified exposure to the SMP five hundred, or
Speaker 1: I could get a basket of thematic stocks like we
Speaker 1: have with you know, with our Moonshot ets that are
Speaker 1: focused on disruption. So in one vehicle, an investor can
Speaker 1: build a fully diversified portfolio or and both have things
Speaker 1: that are more setting and forget it for the long term,
Speaker 1: but complement that with opportunities that they may see over
Speaker 1: shorter time periods or just that they're interested in without
Speaker 1: taking on so much single stock risk. So in terms
Speaker 1: of setup forget it, remind me is it based on
Speaker 1: an index or is it? Is there active management where
Speaker 1: names can change. So when I say that, you know,
Speaker 1: I talked about some of the larger and more well
Speaker 1: known in ets in the market tracking SMP five hundred
Speaker 1: and must emerging markets for that. The more recent interest
Speaker 1: has been in thematic EPs, and those are either actively managed,
Speaker 1: you know, by a team of portfolio managers like we
Speaker 1: saw with traditional aps, or done in a rules based
Speaker 1: systematic fashion. So actually what we do, which is different
Speaker 1: than active management in the moon shot ets is we
Speaker 1: actually scan corporate file things just using something which sounds complicated,
Speaker 1: but really it's just teaching a computer to learn what
Speaker 1: historically has been associated with innovation UH and go out
Speaker 1: and seek those terms. So meaning innovative terms for biotechnology
Speaker 1: versus for industrials. Then we say, do these terms on average?
Speaker 1: Do companies use these terms on average more so than
Speaker 1: their peers? And then actually are they spending money behind it?
Speaker 1: So it's a bit of a talk to talk and
Speaker 1: walk the walk type strategy. So by spending money behind it,
Speaker 1: are they actually spending on research and development, Because it
Speaker 1: doesn't make any sense just to build a basket of
Speaker 1: securities that maybe just simply using innovative terms in their
Speaker 1: corporate filings. But when you pair that with the fact
Speaker 1: that they're actually spending on R and D relative to
Speaker 1: their sales, you end up with companies that are actually
Speaker 1: have a corporate culture focused on disruption innovation and are
Speaker 1: actually putting money behind it. So taking a deeper dive
Speaker 1: into in the moonshots et f on the Bloomberg, I
Speaker 1: see that the biotechnology is is really overweight more than
Speaker 1: eighteen percent. Software comes in next at it. Why are
Speaker 1: you so overweight biotech? So one of the reasons we're
Speaker 1: so overweight biotech today, you know, and of course I
Speaker 1: think the pandemic has put this at the forefront of
Speaker 1: investors minds, is that there's so much exciting disruption happening there,
Speaker 1: whether we're thinking about areas in genetic engineering or going
Speaker 1: back to you know what happened with UM you know,
Speaker 1: to two of the most successful vaccines for COVID. You
Speaker 1: know that's using a brand new technology m n r A.
Speaker 1: It's it's really a way to think about it is
Speaker 1: it is a is a technology. It's not the traditional
Speaker 1: way that we have fought have created flu shots. And
Speaker 1: it doesn't mean the efficacy of those vaccines are not
Speaker 1: as strong. It's just this was brand new. And when
Speaker 1: that's the case for fighting uh, the the the the
Speaker 1: virus which is so paramount today, you can now commercialize
Speaker 1: that in a in a multitude of different ways. But
Speaker 1: there's also you know, other other biotech in the portfolio,
Speaker 1: so immunity bio for example. You know, they're creating customized
Speaker 1: cancer and disease treatments based off of your own DNA.
Speaker 1: So the treatment and sells you might receive today are
Speaker 1: going to be different than what I might receive. UM.
Speaker 1: These are these are technologies which were not available even
Speaker 1: a couple of years ago. How much, just really quickly
Speaker 1: twenty five seconds, Kathy would I mean she has just
Speaker 1: like thrown off, kicked off the roof when it comes
Speaker 1: to innovation, how has that helped kind of even your
Speaker 1: play here that people are just want to have some
Speaker 1: money and exposure to it just very quickly. So I
Speaker 1: think it's great. It's people are focused on it. Our play,
Speaker 1: it's focused more on small and mid cap stocks, so
Speaker 1: great complimentary what they may be doing. All right, Dave Masa,
Speaker 1: thank you so much over a direction, joining us on
Speaker 1: the phone in New York. Thanks for listening to Bloomberg
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